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Larry Thomas

Culp sales increase 25.4%

HIGH POINT - Fabric supplier Culp Inc. said its sales shot up 25.4% in the quarter ended April 29, thanks to strong performances from its upholstery fabric and mattress ticking segments.
     Sales for the period, the fourth quarter of Culp's fiscal year, totaled $75.7 million - the highest quarterly sales total in eight years.
     Mattress ticking sales jumped 23.3% to $43.3 million, while upholstery fabric sales were up 28.4% to $32.3 million.
     Net income fell nearly 43% to $3.4 million or 27 cents per share, due to an income tax expense of $2.07 million. In last year's fourth quarter, net income was $6 million or 45 cents per share, and included an income tax benefit of $1.32 million.
     "These results reflect improved industry demand and the benefits of our outstanding design capabilities and lean global manufacturing platform," said Frank Saxon, president and CEO. "Culp has a strong competitive position in both mattress fabrics and upholstery fabrics as we have continued to offer a wide range of innovative products that meet the changing style demands of our customers."
     The company also initiated a quarterly cash dividend of 3 cents per share and said its board of directors authorized the repurchase of up to $5 million worth of common stock.
     Culp bought back 624,459 shares for about $5.4 million in its most recent fiscal year.
     The dividend will be paid on or about July 16 to stockholders of record July 2. The company said it anticipates paying a dividend in January, April, July and October of each year.
     For the fiscal year ended April 29, sales totaled $254.4 million, an increase of 17.4% from $216.8 million the previous year.
     Net income was $13.3 million or $1.03 per share. That was down 17.7% from $16.2 million or $1.22 per share, the previous year. The latest fiscal year included income tax expense of $902,000, and the previous year included an income tax benefit of $1.1 million.

Culp Inc.

Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 4/29

2012

2011

Change

Sales

$75,711,000

$60,363,000

25.4%

Operating income

5,667,000

4,758,000

19.1%

Net income (a)

3,423,000

5,990,000

(42.9%)

Earnings per share

0.27

0.45

(40.0%)

Year ended 4/29

2012

2011

Change

Sales

$254,443,000

$216,806,000

17.4%

Operating income

14,706,000

15,771,000

(6.8%)

Net income (b)

13,296,000

16,164,000

(17.7%)

Earnings per share

1.03

1.22

(15.6%)

(a) Includes income tax expense of $2.07 million in 2012 and income tax benefit of $1.32 million in 2011. (b) Includes income tax expense of $902,000 in 2012 and income tax benefit of $1.1 million in 2011.

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